2023-06-02 12:37:37
Mortgage foreclosures once again fell sharply in Spain, despite the fact that the environment of rising interest rates suggested a certain moderation in this evolution. But it has not been that way. In total, the number of foreclosures on habitual residence plummeted 25.3% between January and March, until a total of 2,543 procedures were recorded, already adding four quarters down.
If the total number of homes owned by individuals is taken into account (adding the 27% drop experienced in second homes) the decrease in foreclosure certifications is 25.6% compared to the previous year. And the collapse is even more bulky, from 31.1%, to 3,693 executions, if the procedures on legal persons are added, which fell by 51.3%.
IN any case, the fact that the general data falls below 4,000 executions is already quite a milestone, since in previous years the figures have been well above 5,000. “On the other hand, and contrary to what had been happening to date, executions on habitual residences also fell sharply. The -25% year-on-year is the biggest setback in these terms since the 2020 period, in which they were paralyzed as a result of the pandemic”, indicates Ferán Font, director of studies at Pisos.com.
The expert also recalls that “practically six out of every ten foreclosures on housing correspond to mortgages granted in the period 2004-2008”, indicating that territorially, those who lead the statistics are Andalusia, the Valencian Community and Catalonia, which represent among the three most of the 40% of the total. On the contrary, La Rioja and Navarra, with 15 executions, are at the bottom.
It must be remembered that these data do not imply that these procedures have ended in eviction, since they only reflect -with data from the Property Registry- the moment in which the lender states that he wants to recover the home in the event of non-payment. In between, both parties can negotiate and, in any case, it is less common -although it does happen- for evictions to come from mortgaged houses, as they are processes more related to rent.
Even so, the owners of a home with mortgages referenced to the Euribor have faced serious complications in coping with the increase in the cost of their loans.
At the end of the first quarter -date to which the latest INE execution statistics refer- the indicator average stood at 3.647%, compared to the negative sign of -0.237% in March 2022. An abrupt rebound that raised fears higher defaults but which, as the statistics show, does not seem to be happening.
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